NSEL defaults for 28th time, pays Rs 50 lakh

NSEL defaults for 28th time, pays Rs 50 lakh

Embattled spot commodity bourse National Spot Exchange (NSEL) has paid Rs 50 lakh against scheduled payment amount of Rs 86.02 crore, defaulting for the 28th straight time.
The bourse has settled Rs 322.6 crore so far against Rs 5,500 crore that it owes to investors.
"The total amount being disbursed today in a proportionate manner is Rs 50 lakhs," NSEL said in a statement on Tuesday.
NSEL had previously defaulted 27 times. The spot exchange was unable to make any payment on its 7th and 13th pay-out date. The exchange had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on a priority basis to small investors.
To accelerate recovery, NSEL has started the process of liquidation of attached assets of defaulting borrowers. As the first step, the exchange has decided to liquidate assets of Mohan India Group and Vimladevi Agrotech, who together owe around Rs 913 crore.
NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling dues to 148 members after it suspended trade in July last year following a government order in the wake of violation of trading norms.
The bourse had earlier said it plans to settle all the dues in 30 weeks time, by paying Rs 174.72 crore each for first 20 weeks followed by Rs 86.02 crore each in next 10 weeks.

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